Cities That Are Raising Their Housing Tax on Second Homes

In recent years, French cities have been able to increase their share of the housing tax on second homes. 

This measure applies to municipalities where the annual tax on vacant housing (TLV) applies automatically—that is, primarily in areas with tight housing markets or tourist areas. Under Article 1407 ter of the General Tax Code, cities may increase their share of the housing tax on second homes (THRS) by 5 to 60 percent.
 

In 2024, 1,461 of the 3,697 municipalities in question decided to apply this surcharge, representing 39.5% of the total, compared with 27.1% in 2023. Among these municipalities, one-quarter (359, to be exact) chose to apply a rate of 20% or less, compared with nearly one-third in 2023. The share of municipalities that voted for a 60% rate has declined slightly (36.9% compared with 39%), but their number now stands at 539, up from 120 last year.
 

Among the cities that have opted for the maximum rate of 60% are Biarritz, Bordeaux, Marseille, and Paris—which have already been applying this rate for several years—as well as Espelette (64), Arcachon (33), Martigues (13), Le Vésinet (78), Montpellier, and its neighboring town, Frontignan (34).
 

As a result, owning a second home in one of these municipalities can be expensive, especially since the housing tax on second homes is calculated based on the property’s assessed rental value, which can vary from year to year. Owners of second homes should therefore find out what rates apply in their municipality and factor this expense into their budget.